Working with Landlords

Fig. 5.1: Results of BFI’s assessment for Working with Landlords

Source: BFI analysis

For an explanation about how to read this radar chart see Strategic Management

5.1 This section considers how effectively Knowsley Council works with private landlords, registered social landlords and its Housing department.

5.2 A local authority needs to ensure that it:

· communicates effectively with all its landlords to give landlords the confidence to let to HB tenants

· makes appropriate use of direct payments to landlords

· prevents evictions

· reduces overpayments to landlords by making landlords aware of their responsibilities

· takes prompt and appropriate action when overpayments occur.

5.3 To establish the effectiveness of the service that Knowsley Council provided for its landlords we:

· interviewed management and staff in the Benefits service during our
on-site activity in November 2003

· interviewed registered social landlords and private landlords

· examined key documents provided by Knowsley Council

· analysed the outcomes of our sampling of casework.

5.4 Figure 5.1 demonstrates that Knowsley Council is not at Standard for Working with Landlords. There were a number of weaknesses in the service that Knowsley Council offers to its landlords.

Communicating effectively with landlords

5.5 HB is an entitlement of the tenant rather than the landlord. However, unless the operation of the HB system gives landlords the confidence to let property to tenants reliant on HB, these tenants may be excluded from access to decent housing.

5.6 It is important that local authorities provide general advice and information to landlords about HB and CTB and their respective responsibilities.

5.7 Rent arrears caused by delay and error in HB will make it more likely, in both private and social rented sectors, that tenants will face eviction action, leading to:

· stress and costs for the tenant

· potential award of court costs against the authority

· additional costs for re-housing those who then become priority homeless.

5.8 In direct payment cases where the tenant has consented to this arrangement, the council should also contact landlords annually with information about benefits and landlord responsibilities. It should also inform the landlord as well as the tenant when a renewal claim is due.

5.9 Following a Large Scale Voluntary Transfer of housing stock in July 2002, registered social landlords owned the largest number of rented properties in the area.

5.10 Knowsley Council did not meet Standard but had strengths in the following areas of communicating effectively with landlords.

5.11 Knowsley Council had a series of leaflets that provided clear practical advice to landlords on the operation of HB. The registered social landlords told us that that they were provided with adequate stocks of the leaflets for distribution to their tenants.

5.12 Customer service staff were aware of the availability of these leaflets and they would issue them on request.

5.13 In July 2001, the council gave additional duties to a full-time officer to act as a point of contact for all registered social landlords in place at the time. Prior to the Large Scale Voluntary Transfer of housing to Knowsley Housing Trust in July 2002, housing department staff had direct access to members of staff within the Benefits processing teams. These liaison arrangements remained in place for the new Knowsley Housing Trust staff.

5.14 The registered social landlords confirmed that they had a service level agreement with the authority, and that minuted meetings took place on a
2-monthly basis. They told us that performance against the service level agreement was monitored and discussed at these meetings with appropriate action taken.

5.15 Whilst on-site the Benefits manager told us that Knowsley Council had made a decision to appoint, and had advertised for, a full time Liaison Officer to provide a point of contact for all its landlords. This will provide a useful opportunity for Knowsley Council to keep all its landlords informed of progress clearing the backlog of outstanding claims.

5.16 Knowsley Council had introduced a locally produced consent form, which could be completed by the customer authorising the landlord to act on their behalf.

5.17 Landlords confirmed that when they received payment of HB directly from the authority, a copy of the decision letter was sent to them at the same time as the decision letter was sent to the customer. In addition they received a copy of the renewal notice when it was issued to the customer. These letters met regulatory requirements.

5.18 A schedule accompanied all payments to landlords. It detailed the customers name, payment amount, period of payment, the tenancy and the number of weeks it was for.

5.19 Knowsley Council had implemented the Registered Social Landlord Verification Framework scheme which allowed registered social landlords to verify claims and accept evidence on behalf of Knowsley Council.

5.20 To achieve Standard Knowsley Council needs to:

· publicise the availability of its landlord information leaflets. Although it had a series of leaflets that provide clear practical advice to landlords on HB it did not publicise their availability to its private landlords. Neither the claim form nor decision notices detailed the landlord's responsibilities. Knowsley Council did not have regular two-way communication or communicate annually with its private landlords to provide up-to-date information on the HB scheme

· amend its claim form to provide customers with the option to consent to information being disclosed to landlords where the provisions of the HB Regulations and Data Protection Act are met

· provide staff with procedural guidance and/or desk aides detailing the policy on the disclosure of information to landlords.

5.21 All of the private landlords interviewed were unaware of the availability of information leaflets for landlords, on the operation of HB. Knowsley Council staff confirmed that the availability of these leaflets was not publicised and that they were only provided on request. Private landlords reported that they did not have any formal channels of communication with the authority.

5.22 We analysed Knowsley Council’s claim form and found that it did not meet the requirements of the Department’s HB/CTB1 form. We discuss this further and make recommendations in Customer Services – clear, simple, accessible claim forms.

5.23 We were told by staff that they were unaware of the information that could be provided to landlords.

5.24 Knowsley Council’s relationship with its landlords is extremely important as unexplained delays in processing Benefit claims and other misunderstandings could result in tenants being evicted. It needs to ensure that it communicates effectively and provides the same level of service to all its landlords, so that all claims receive equal treatment. This will provide assurance to all its landlords that claims from their tenants are treated fairly and will give landlords the confidence to let to HB tenants.

Recommendations

We recommend that Knowsley Council:

· provides clear, practical and up-to-date information to all its landlords on how HB and CTB is administered · provides guidance and monitors information provided on individual claims to landlords to ensure compliance with that guidance on the disclosure of information to landlords · communicates annually with all landlords to: - provide up-to-date information on their responsibilities - encourage them to co-operate to prevent overpayments and the need for recovery action against the landlords - remind landlords of their duty to protect the public purse by reporting cases of actual or suspected fraud.

Paying landlords, preventing evictions

5.25 This section is about preventing delays in HB payment, which can put a customer’s tenancy in jeopardy or force a customer into debt. It also covers the appropriate use of direct payments to landlords and suspending direct payments when necessary.

5.26 Knowsley Council did not meet Standard but had strengths in the following areas of Paying landlords, preventing evictions.

5.27 Our sampling of new and renewal claims confirmed that direct payments were made to landlords in accordance with regulations. We comment in Processing of Claims – payments on account that payments on account are not made in line with the Processing of Claims Standard.

5.28 To achieve Standard Knowsley Council needs to:

· use the provision to withhold payments of rent allowance in accordance with Regulations 11 to 13 of the HB and CTB Decisions and Appeals Regulations 2001

· operate the ‘fit and proper person’ test effectively in accordance with Regulations 93 (3) and 94 (IB) of Housing Benefit (General) Regulations 1987

· encourage the landlord to make direct contact before taking court action in all cases.

5.29 Regulation 93(3) and 94(1B) of the Housing Benefit (General) Regulations 1987 gives authorities powers to withhold direct payments where it is not satisfied that the landlord is a ‘fit and proper’ person. The test allows authorities to refuse direct payments.

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5.31 One registered social landlord told us that they were advised to contact the authority by the Liaison Officer before considering enforcement action. However, this view was not mirrored by another who stated that Knowsley Council responded on receipt of an eviction notice. The private landlords that we interviewed confirmed that there were no particular arrangements in place for their tenants and a number of them had been advised by front-line staff to obtain an eviction notice to raise the priority of individual claims. We discuss the relationship between front-line Accessible Services staff and the Benefits service in Strategic Management – internal working arrangements.

5.32 Knowsley Council needs to assure itself that Benefit is paid only to responsible landlords. It can achieve this by operating the ‘fit and proper person’ test and withholding payments in appropriate cases. Landlords should be encouraged to make direct contact where there is a real risk of enforcement action being taken, rather than routinely being advised to circumvent the Benefits claims process. Appropriate claims can then be identified and prioritised as necessary. This will help provide assurance that tenants are not forced into serious debt or their tenancy jeopardised.

Recommendations

We recommend that Knowsley Council:

· undertakes the ‘fit and proper person’ test in accordance with Regulations · uses the provision to withhold payments of rent allowance in accordance with Regulations 11 to 13 of the HB and CTB Decisions and Appeals Regulations 2001 · encourages all landlords to make direct contact before taking enforcement action.

Minimising and recovering overpayments

5.33 Co-operating with landlords prevents the build-up of overpayments and facilitates the recovery of any overpayments from landlords or tenants.

5.34 Knowsley Council did not meet Standard but had strengths in the following area of Minimising and recovering overpayments.

5.35 Where a decision had been made by Knowsley Council to recover an overpayment of benefit from direct payments to a landlord, the decision notice was routinely sent to both the landlord and customer advising them of this fact.

5.36 To achieve Standard Knowsley Council needs to:

· amend its decision notices to include the reason why the overpayment has been deemed as recoverable from the customer or landlord. We comment and make recommendations on this in Overpayments – decision notices

· seek recovery from the customer where the failure to notify changes in circumstances was attributable entirely to the customer

· correctly apply the regulations that prevent the recovery of HB overpayments from landlords who report suspected fraud in certain circumstances.

5.37 We were told that Knowsley Council sought recovery from the customer and not the landlord as appropriate in accordance with regulations. We did not find any instances of this course of action within our sample of 30 overpayment cases.

5.38 We confirmed that Knowsley Council actively pursued recovery from both Housing Associations and other landlords. It had used section 75(5) of the Social Security Administration Act 1999 to recover from payments to landlords in respect of other tenants in 77 cases and had recovered £24,591 during 2002/03.

5.39 Overpayments in respect of Knowsley Housing Trust were repaid by a monthly schedule.

5.40 We were told that Knowsley Council would be extending its fraud awareness training to registered social landlords and other landlords in an attempt to encourage landlords to report potential tenant fraud.

5.41 By working closely with all its landlords Knowsley Council can increase their understanding of overpayments recovery policy and ensure that changes of circumstances are routinely reported, potential overpayments prevented and recovery effected in the most cost effective and efficient manner.

Recommendations

We recommend that Knowsley Council includes provisions in its HB and CTB overpayment policy that ensure:

· recovery is sought from the customer rather than the landlord in appropriate cases · that recovery is not sought from the landlord where they have reported suspected fraud in appropriate circumstances.

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